Town Branch is an Investrust Branch which is located in the district of Town. The Branch is run with a staff compliment of 12 people. During the full year of 2022, the Branch sold K18,000,000 worth of personal Commercial loans at interest rate of 30%. The Bank Charges loan arrangement fees at a rate of 5% and credit insurance is charged at 2% flat rate. The bank earns insurance sales commission equivalent to 25% of the Insurance premium paid on loan sales. During the year 2022 , the loan attrited by K9,000,000 on account of loan balance transfers, refinancing and repayments. At the beginning of the year 2022 the Branch had a total loan book of K24,000,000. The average CASA deposits in the year 2022 were k20,000,000 attracting interest at a rate of 1.5% per annum and a term deposit stock averaging K15,000,000 attracting interest at a rate of 13% per year. The Provision for loan losses during the year were to a tune of K1,200,000. During the year the Branch incurred staff salaries and allowances amounting to K1,500,000. The Branch Premises rent cost per month was K40,000 while security costs were k130,000 for the year. CIT and outsources Custodial costs for the year amounted to K550,000. The Branch incurred utility bills (water, electricity, telephone) costs of K210,000 for the whole year, while incurring branch stationary costs of K402,000 due to high volumes of account opening activities and the Constituency development fund demands. Required a. Prepare the P\&L for Town Branch for the year 2022. b. Compute the cost to Income ratio, return on Investment, the loan to deposits ratio, Revenue per employee, and the cost of funds ratio from the information provided in the scenario. Town Branch is an Investrust Branch which is located in the district of Town. The Branch is run with a staff compliment of 12 people. During the full year of 2022, the Branch sold K18,000,000 worth of personal Commercial loans at interest rate of 30%. The Bank Charges loan arrangement fees at a rate of 5% and credit insurance is charged at 2% flat rate. The bank earns insurance sales commission equivalent to 25% of the Insurance premium paid on loan sales. During the year 2022 , the loan attrited by K9,000,000 on account of loan balance transfers, refinancing and repayments. At the beginning of the year 2022 the Branch had a total loan book of K24,000,000. The average CASA deposits in the year 2022 were k20,000,000 attracting interest at a rate of 1.5% per annum and a term deposit stock averaging K15,000,000 attracting interest at a rate of 13% per year. The Provision for loan losses during the year were to a tune of K1,200,000. During the year the Branch incurred staff salaries and allowances amounting to K1,500,000. The Branch Premises rent cost per month was K40,000 while security costs were k130,000 for the year. CIT and outsources Custodial costs for the year amounted to K550,000. The Branch incurred utility bills (water, electricity, telephone) costs of K210,000 for the whole year, while incurring branch stationary costs of K402,000 due to high volumes of account opening activities and the Constituency development fund demands. Required a. Prepare the P\&L for Town Branch for the year 2022. b. Compute the cost to Income ratio, return on Investment, the loan to deposits ratio, Revenue per employee, and the cost of funds ratio from the information provided in the scenario
